Image of money acquired from monthly installment loans, loan officers greeting clients, and a clock

When you think about taking a loan, there are a couple of options in Singapore, such as borrowing from the bank or from licensed money lenders.

While banks have stricter loan application criteria, you can get a monthly loan from money lenders even with bad credit.

Common types of loans you can get from licensed money lenders are often monthly installment loans, which are short-term loans that are repaid in installments every month instead of in a lump sum. This allows you to have less cash flow constraints as you can spread out your repayment period over a couple of months, up to 12 months.

Different Types of Monthly Installment Loans in Singapore

There are secured and unsecured monthly loans. Secured loans are loans that are backed by the borrower’s property or other financial assets, that can be used as payment to the lender if the borrower is unable to repay the loan.

Below are some common types of monthly loans in Singapore you can get from money lenders:

Personal Loans

Personal loans can be used for a wide variety of purposes, such as wedding, home renovation, medical expenses and debt consolidation, etc. Generally, a personal loan from a licensed money lender is unsecured, which means it doesn’t require any type of collateral.

Business Loans

If you are a business owner running a startup or SME, there might be times when you encounter financial difficulties or require some financial injection to grow your business. That’s when a business loan can come in handy to help you ease your cash flow.

Study Loans

If you require extra funds to pay for your higher education fees, it can be tough to juggle your studies and part-time work at the same time. Taking a study loan can help to ease your financial burden so you can focus on completing your education without worrying about the funds. Besides money lenders, the government also issues study loans.

Pros and Cons of Monthly Installment Loans


Lower monthly interest

As these money loans’ monthly payments are paid over a few months, the interest charged per month would usually be lower than 1 month loans or payday loans, which are repaid in full in one month’s time and have higher interest rates.

This means you can spread out your repayment and have better cash flow.

Fast and easy approval

Usually, monthly installment loan lenders approve the loan applications pretty quickly, and you can get the funds within a day. Money lenders usually have less stringent loan approval processes than banks, so even if you have bad credit, your loan application might still be approved (unless you have defaulted on loans with other lenders!).



High late interests and fees

One of the downsides of a monthly installment loan is that you need to be disciplined to repay your loan on time every month. If you are late with your repayment, you will incur late interest of up to 4% per month for each month the loan is repaid late.

You may also incur late repayment fees of up to $60 for each month of late repayment. So make sure you set reminders and do your budgeting well so you can make your payments on time to avoid accumulating debt.

How to Calculate Interest Rates

As loans from licensed money lenders often have reducing interest rates, this means the interest rates are calculated based on the principal amount outstanding at the end of a specific period.

So for example, if you borrowed $7,000 and have repaid $2,000 of the principal loan amount (not including interest), interest for your next payment will be calculated based on the remaining $5,000.

You can find monthly loan repayment calculators online to help you with your calculations if needed.

How to Apply for a Monthly Installment Loan

You can apply for a monthly loan with money lenders easily in just a few steps:

1. Fill up the application form online

To apply for a monthly loan with us, simply fill up the application form online on our website. This will only take you less than a minute.

2. Head down to money lender’s office for verification

After the loan executive calls you up for a confirmation of your loan, you will need to go to the money lender’s office at Jurong East for verification and to discuss the loan terms, such as loan amount, repayment period, interest rates and more. During this time, you can negotiate your loan terms before you sign the loan contract.

The licensed money lender will also give you relevant advice if you require, such as the loan terms that might work best for your situation. The lender will also evaluate the creditworthiness of the borrower.

3. Funds disbursement

Once the loan contract has been signed, you will be able to get the money disbursed to you in minutes, either in cash or transferred into your bank account.

At this point, you will be able to use the funds to resolve your cash flow or debt issues. But do remember to repay your loan on time. However, do note that if you wish to pay off your loan early, some money lenders might impose an advance payment penalty.

Why You Should Opt for Monthly Installment Loans with Cash Direct

If you need instant cash, the monthly installment loans can be a quick short term solution. It’s easy to apply with fast approval processes, with comfortable monthly installment repayments.

However, do note that this is not a long term solution if you have long term cash flow issues – you will still need to do proper financial planning to resolve those.

At Cash Direct, we process your loans instantly within a day and we don’t require collaterals, guarantors or deposits from you. We are flexible and can cater the loan according to your needs – simply fill up the loan form and apply online with us.


The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.